NZDUSD Triple Top

The Reserve Bank of New Zealand cut interest rates today by 25bp. NZD/USD soared because the market hoped for a larger 50bp cut. However the RBNZ made it clear that they built in 60bp of easing into their projections which means they still have the intention to ease. For this reason we believe that NZD/USD gains will be limited to 73 cents.

Technically there is a very clear triple top in NZDUSD around 73 cents. Today’s move took the pair as high as 0.7340. A correction should take NZD/USD back down to 72 cents. A move beyond today’s high would pave the way for test of the 100-month SMA at 0.7450.